The Reserve Bank of India has directed fintech company OneCard to temporarily stop issuing new co-branded credit cards with its partner banks. The regulator has communicated this decision directly to the partner banks, asking them to pause new card issuance until concerns related to compliance and customer data sharing are fully addressed.
This move highlights the RBI’s continued focus on strengthening regulatory oversight in the rapidly growing fintech and credit card space. Similar actions have been taken in the past against other co-branded card arrangements that did not fully meet regulatory expectations.
The RBI’s concerns primarily relate to how customer data is shared and managed between OneCard and its banking partners. Regulators want clear accountability, secure handling of customer information, and strict adherence to data protection and compliance norms.
Over recent years, the RBI has asked multiple banks and fintech firms to either pause, redesign, or restructure co-branded credit card programmes to ensure stronger governance and consumer protection.
OneCard issues its credit cards in partnership with several banks, including:
Earlier, some of these banks were already asked to suspend or revise their co-branded card programmes. Those partnerships were later redesigned to align with updated regulatory requirements.
The RBI has clarified that this restriction is temporary. New OneCard issuance will remain suspended until OneCard and its partner banks complete the required corrective actions. Once these measures are implemented, the regulator will review the progress before deciding whether to lift the restriction.
OneCard has acknowledged the RBI’s directive and stated that it is working closely with its banking partners to address all compliance gaps.
OneCard is a metal credit card offered through partnerships between a fintech platform and multiple Indian banks. It is known for features such as instant virtual card access, advanced spending controls, and reward points that do not expire. The card combines a digital-first user experience with traditional banking infrastructure.
The immediate impact of the RBI’s decision is the suspension of new card approvals. Marketing campaigns and onboarding activities for new customers have been paused, and OneCard will face enhanced regulatory scrutiny and reporting requirements.
Existing cardholders are not affected by this decision. Current users can continue to use their cards normally, access their accounts, and earn rewards without disruption.
However, the pause may impact OneCard’s growth momentum and could temporarily affect customer confidence until the issue is resolved.
The RBI’s decision to halt new OneCard issuance marks an important moment for India’s fintech and credit card ecosystem. It reinforces the regulator’s strict stance on compliance, data security, and customer protection. While the suspension is temporary, it serves as a reminder that fintech-led financial products must meet the same regulatory standards as traditional banking offerings.
Once the RBI is satisfied with the corrective measures taken by OneCard and its partner banks, new card issuance is expected to resume.
